Both precious metals received strength today after more eurozone headlines drove stimulus expectations. French President Francois Hollande and German Chancellor Angela Merkel pledged to protect the euro after discussing events by telephone. Germany and France are deeply committed to the integrity of the eurozone. They are determined to do everything to protect the eurozone,” the two said in a joint statement.
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The announcement comes one day after European Central Bank President Mario Draghi pledged that the ECB “is ready to do whatever it takes to preserve the euro, and believe me, it will be enough.” Furthermore, central bank officials said Draghi will hold talks with Bundesbank President Jens Weidmann in the coming days, signaling more hope for government bond purchases.
In afternoon trading, the SPDR Gold Trust (NYSEARCA:GLD) gained 0.44 percent, while the iShares Silver Trust (NYSEARCA:SLV) increased 0.64 percent. Gold miners (NYSEARCA:GDX) such as Goldcorp (NYSE:GG) and Kinross Gold (LGC) climbed 0.61 percent and 1.31 percent higher, respectively. Meanwhile, Silver Wheaton (NYSE:SLW) and Endeavour Silver (NYSE:EXK) both gained around 1 percent.
Shares of Newmont Mining (NYSE:NEM) dropped 4 percent, as the miner said further protests and social unrest in Peru could delay operations at its $5 billion Conga gold mine project.”I must continue to caution that ongoing community unrest and protests could further delay advancement of those activities,” Chief Executive Officer Richard O’Brien told Wall Street analysts on a conference call, according to Reuters.
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Disclosure: Long EXK, AG, HL, PHYS